You have 5000 ringgit and want to do short-term trading, how do you grow it?

 

You have 5000 ringgit and want to do short-term trading, how do you grow it?

According to what is short-term trading - Zhihu - Zhihu column, short-term trading is a way of operation by buying and selling the target stock in the short term to obtain the difference (generally not more than seven trading days, as short as the next day).

The risks and returns of short-term trading are very high, requiring rich practical experience, keen market insight, good psychological quality, and strict risk control capabilities.

Assuming you only have 5000 ringgit, you want to do short-term trading, each transaction, locking the return rate between 5% and 10%, then how long can you earn 10,000, 50,000, 100,000, 200,000, 300,000, 400,000, 500,000, 600,000, 700,000, 800,000, 900,000 or even 1 million?

We can use the following formula to calculate:

$$\mathrm{<br>}$$

Where:

$�$ is the number of transactions required

$�$ is the return rate of each transaction (assuming fixed)

$�$ is the target amount

$�$ is the initial amount

For example, if the return rate of each transaction is 5%, then to earn 10,000 ringgit from 5000 ringgit, the number of transactions required is:

$$�={\log }_{1.05}\frac{10000}{5000}\approx 14.21$$

That is to say, about 14 transactions are needed to reach the goal.

Similarly, we can list the number of transactions required under different rate of return and different target amounts in a chart: (see chart)

From the chart, it can be seen that the higher the return rate of each transaction, the fewer the number of transactions required. However, in actual operation, not every transaction can guarantee to achieve the expected rate of return, and even a loss may occur. Therefore, this chart is just an idealized model and cannot be used as the basis for actual operation.

In addition, short-term trading also needs to consider the impact of transaction costs and taxes. Each transaction will generate commissions, stamp duty, clearing fees and other expenses, these expenses will reduce the actual rate of return. Moreover, if the income from short-term trading exceeds a certain amount, income tax will need to be paid, which will also affect the final net income.

In summary, you only have 5000 ringgit, you want to do short-term trading, each transaction, locking the return rate between 5% and 10%, how fast can you earn 10,000, 50,000, 100,000, 200,000, 300,000, 400,000, 500,000, 600,000, 700,000, 800,000, 900,000 or even 1 million, there is no definite answer.

This depends on your trading skills, market conditions, transaction costs and taxes and other factors. Short-term trading is not a simple way to make money, but a high-risk and high-return speculative behavior.

Before you engage in short-term trading, you should fully understand the characteristics and risks of short-term trading, and formulate reasonable trading plans and strategies according to your own capabilities and risk tolerance. I hope these calculations and analyses are helpful to you. 😊

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